SAN DIEGO and SUNNYVALE,
Calif., Jan. 27, 2015 /PRNewswire/ --
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Silicon Image, Inc.
(NASDAQ: SIMG) by Lattice Semiconductor Corporation (NASDAQGS:
LSCC). On January 27, 2015, the
two companies announced the signing of a definitive merger
agreement pursuant to which Lattice Semiconductor will acquire
Silicon Image in an all-cash tender offer of $7.30 for each share of Silicon Image common
stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/silicon-image-incorporated
Is the Proposed Acquisition Best for Silicon Image and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Silicon Image is undertaking a fair process to
obtain maximum value and adequately compensate its
shareholders.
As an initial matter, the $7.30
merger consideration represents a premium of only 23.7% based on
Silicon Image's closing price on January 26,
2015. This premium is significantly below the average
one-day premium of nearly 43.6% for comparable transactions within
the past three years. Further, the $7.30 merger consideration is below the target
price of $8.00 set by an analyst at
Sidoti & Company LLC on January 6,
2015. Moreover, Silicon Image traded above the offer
price as recently as December 9,
2014, closing at $7.32.
On October 30, 2014, Silicon Image
released its earnings results for its third quarter 2014, reporting
strong quarterly earnings. For the quarter, the company reported
revenue of $70.3 million, compared
with $59.5 million in the second
quarter of 2014, an increase of 18.2%. Silicon Image also reported
GAAP net income for the third quarter of 2014 of $10.3 million, compared with $1.1 million for the second quarter of 2014, and
$9.0 million for the third quarter of
2013. Additionally, Silicon Image beat consensus analyst estimates
for adjusted EPS and adjusted net income in three out of its past
four quarters. In commenting on these results, Silicon Image
Chief Executive Officer Camillo
Martino remarked, "In the quarter, we saw continued strength
in our CE business with year-to-date performance up 38 percent over
the same period last year. Today we are also announcing plans to
create two new subsidiaries to help unlock the value of some of our
core assets."
In light of these facts, Robbins Arroyo LLP is examining Silicon
Image board of directors' decision to sell the company now rather
than allow shareholders to continue to participate in the company's
continued success and future growth prospects.
Silicon Image shareholders have the option to file a class
action lawsuit to ensure the board of directors obtains the best
possible price for shareholders and the disclosure of material
information. Silicon Image shareholders interested in information
about their rights and potential remedies can contact attorney
Darnell R. Donahue at (800)
350-6003, ddonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP